Being able to read the Price Action correctly is one big step towards becoming a Full-time trader.
Many beginner traders often see Price Action movements as unexpected and unjustified, especially when it means that their trades get closed with a loss.
However, the Price Action plays a big role in identifying the best setups.
But do not believe that the Price Action alone is enough, as we discuss in this article.
So, what’s the truth?
Of course, you need to be able to correctly identify many Price patterns that often form on the chart.
But then you need to combine the Price Action with a few quality Trading Indicators.
The answer is in today’s live trade on our TradingView chart that you can re-watch below.
In fact, before even looking at the indicators, we can clearly identify a possible short-selling setup just by looking at the Price Action (and the most recent price structure).
Then, we use the Trading Indicators to look for confirmation, not only of a Trading Setup but also of a High Probability Trade!
In this case, both the Bottoms Tops Signal and the RSI Exhaustion, confirm our technical analysis and so we open the trade.